Changeable verification check controlled vending

ABSTRACT

A vending system and method wherein check-receiver means receives a check having a memory address code and changeable verification code, both of which may be magnetically encoded in stripe format. A code reader reads the codes of a received card. Code-comparing means compares the read verification code with a number stored in a memory at a memory address corresponding to the read address code. If the comparison is correct, a vend means effects a vend operation. A random number generator is operative upon said vending operation to generate a new verification code and corresponding new verification number. Recording means records the new verification code on the check and a means stores the new verification number at said corresponding memory address, changing the previous verification code and number. A retention facility retains the received check upon said vend operation.

United States Patent Hendrickson CHANGEABLE VERIFICATION CHECKCONTROLLED VENDING [75] Inventor: William W. Hendrickson, St. LouisCity, Mo.

[73] Assignee: UMC Industries, Inc., St. Louis, Mo.

[22] Filed: July 12., 1972 [21] Appl. No.: 271,213

[52] US. Cl 194/4 C [51] Int. Cl. G07f 7/02 [58] Field of Search 194/4,l3, l0, 4 C

[56] References Cited UNITED STATES PATENTS 3,254,749 6/1966 Scherer194/13 X Primary ExaminerStanley H. Tollberg Attorneylrving Powers etal.

[ Nov. 27, 1973 [5 7] ABSTRACT A vending system and method whereincheck-receiver means receives a check having a memory address code andchangeable verification code, both of which may be magnetically encodedin stripe fonnat. A code reader reads the codes of a received card. Codecomparing means compares the read verification code with a number storedin a memory at a memory address corresponding to the read address code.lf the comparison is correct, a vend means effects a vend operation. Arandom number generator is operative upon said vending operation togenerate a new verification code and corresponding new verificationnumber. Recording means records the new verification code on the checkand a means stores the new verification number at said correspondingmemory address, changing the previous verification code and number. Aretention facility retains the received check upon said vend operation.

12 Claims, 2 Drawing Figures wRITE NEW VERIF. coDE sToRE NEw VERIF. NO.

READ ADDREss RANDOM CHECK READ/WRI E sag? T sToRED READ wRITE vERIF.

No. D E E READ CHECK VERlF vERIFIcATIoN vERIE 0K NUMBER CODE 7 VENDORREcEIvER CODE COMPARE OK P IcE CODE NOT 04K, J VEND VEND 8 RETAIN IRETAIN J j COMPLETE PRICE CHECK I CHECK 25 CHECK RAN DOM VE N D NUMBERPRICE RETENTION GENERATOR COMPARE 39 READ PRICE CODE 2 vEND READ vENDLOC. coDE LOCATION NUMBER COMPARE T *4l SETVEND LOCATION NUMBER 1CHANGEABLE VERIFICATION CHECK CONTROLLED VENDING BACKGROUND OF THEINVENTION This invention relates to vending and more particularly tocheck-controlled vending, i.e., vending under the control of a check,such as a credit card, token, or the like.

It has previously been proposed to control vending with conventionalembossed or magnetic-stripe credit cards. For example, U.S. Pat. No.3,184,714 to Brown et al. discloses a system for vending gasoline underthe control of a customers conventionally embossed credit card. RandallU.S. Pat. No. 3,629,834 teaches a system for dispensing money inresponse to a bank customers embossed credit card and keyed entry intothe vending control apparatus of his personal identification number. Theuse of a personal credit card having a magnetic stripe carrying acustomer's account number in magnetically encoded form is disclosed byKarecki et al. U.S. Pat. No. 3,651,986, wherein a system is describedfor vending currency and which updates credit information on the creditcard before returning it to the customer.

Prior art credit-card-controlled vending systems of the foregoing typesall have the characteristic that the credit card or other so-calledcheck is associated with a particular credit account number, i.e., withan individual customer. Such credit cards or checks are thuspersonalized and are not useful for a merchandizing situation where itis desirable that the check be used by a customer for only one purchase.

A desirable merchandiz ing method is to sell or otherwise provide checksto customers for a one-time use, each check then becoming a token ormedium of exchange in the nature of scrip which any customer holding thecheck may use with check-controlled vending apparatus in order to bevended whatever checkcontrolled unit the check entitles him to receive.In this type of system, which may be referred to as a single-use system,the checks are not personalized, i.e., they are like ordinary moneyhaving no association with an individual customer.

The term check is used in the broad sense of any means adapted to beinserted in a vendor for controlling operation of the vendor, and in thesame sense as this term is believed to be used in the title of Class 194of the U.S. Patent Offices Manual of Classification. The term vendor isused in the broad sense of any check-controlled unit for dispensingarticles, liquids or services.

Simple tokens or ordinary mediums of exchange have certain disadvantagesin single-use check-controlled vending systems of the foregoing type-Forexample, they may be easily counterfeited, altered, duplicated orstolen, or may be difficult to handle mechanically, or difficult tocontrol as to number or inventory.

SUMMARY OF THE INVENTION cheating, or the like; the provision of such asystem and methods in which checks are employed which if copied withoutauthorization effectively preclude unauthorized vending, and in whichchecks are easily handled and easily controlled as to number orinventory.

Briefly, a check-controlled vending system comprises means for receivinga check having a memory address code and a verification code, theverification code being adapted to be changed. Means is provided forreading these memory address and verification codes. A random-accessmemory stores a plurality of verification numbers at correspondingmemory addresses thereof and means is included for comparing averification code read from a received check with a verification numberstored 'in the memory at a memory address corresponding to the memoryaddress code read from the received check. A vend means effects a vendoperation if the read verification number compares correctly with theverification number stored at said corresponding memory address. Arandom number generator serves as means for generating verificationcodes and verification numbers and is operative upon a vending operationto generate a new verification code different from the verification coderead from the received card and a corresponding new verification number.Means is included for recording the new verification code on thereceived check so as to change the cards verification code to the newone. Similarly, there is provision for storing at said correspondingmemory address a new verification number corresponding with the newverification. code, thereby changing the verification number at saidcorresponding memory address. Suitable means retains the received checkupon said vend operation.

As a method of vend control, the invention comprises receiving a checkhaving a memory address code and a verification code adapted'tobechanged, electronically reading the 'memory' address and verificationcodes, and electronically comparing the verification code with averification number stored in a random access memory at a memory addresscorresponding to the memory address code read from the received check.If the read verification code compares correctly with the verificationnumber stored at said corresponding memory address, a vending operationis initiated and a new verification code and a corresponding newverification number are generated. The verification code of the receivedcheck is electronically changed by recording the new verification codeon the received check. The corresponding next verification number isstored at said corresponding memory address, the received check beingretained upon said vend operation. Other objects and features will be inpart apparent and in part pointed out hereinafter.

BRIEF DESCRIPTION OF THE DRAWINGS FIG. l is a front elevation of acard-like check employed in the invention and adapted to have encodedinformation recorded thereon in a magnetic stripe format; and

FIG. 2 is a block diagram of the present system.

Corresponding reference characters indicate corresponding partsthroughout the several views of the drawings.

DESCRIPTION OF THE PREFERRED EMBODIMENT Referring now to the drawings, acheck for use in a check-controlled vending system of the invention'isindicated at 11. While various forms of checks may be employed, as willlater be apparent, check 11 is shown as of a card-like configurationsimilar to conventional credit cards which typically are of thin,resilient synthetic resin material. Check 11 is suitably provided with amagnetic stripe 13 having a magnetic oxide material so that the stripeis machine-readable and machine-recordable. I.e., information may bemagnetically read (detected) or written( recorded) on stripe 13. Theinformation is preferably constituted by characters which are encoded,as in a binary code. A recording density of 75 binary bits per inch maybe used, for example.

In accordance with the invention, check llcarries a memory address codeand a changeable verification code, and may also include a vend pricecode (referred to hereinafter as the price code) and a vend locationcode. Each of these codes may be constituted by one or more digitalcharacters written on magnetic stripe 13 in binary form. Dashed-linerepresentation is used to schematically illustrate a first group ofmagnetically recorded binary digits 15 constituting the memory addresscode, a second group of binary digits 17 constituting the changeableverification code, a third group of binary digits 19 constituting thevend location code, and a fourth group of binary digits 21 constitutingthe price code.

It is contemplated that checks having the configuration of check 11 willbe particularly useful for singleuse check-controlled vending. In suchsingle-use vending, a customer may purchase from a merchant one or moresuch checks. The customer then may use the check 11 for a vendoperation, e.g., in conjunction with a vending machine within a store.

In this single-use context, the purposes for the encoded information canbe understood as follows: The memory address code defines a number whichis unique to the check. l.e., there may be hundreds of such checks of agroup, each check havinga different address code such as one of thenumbers l599. The address code corresponds with a memory address withinthe vending machine as will later be more appar-. ent. The verificationcode defines a number which can be compared by the vending machine witha corresponding number in the vending machine to determine whether thecheck holder is entitled to a vend operation. The vend location code maybe regarded as a store code, i.e., may identify a predetermined storelocation where a check 11 may be used for a vend operation, or mayidentify a predetermined vending machine within a store. The price codedefines the price of a vend operation. Thus different checks 11 mayentitle check holders to respective vend operations of different prices.

During a vend operation, as explained below, the verification code of acheck 11 is changed, the other encoded information including the addresscode, the vend location code, and the price code remaining unchanged.Thus it is to be noted that the latter three codes need not necessarilybe magnetically encoded on the magnetic stripe 13 but instead could beprovided on the check in other ways, as by embossing, for example.Referring to FIG. 2, indicated at 23 is a suitable unit for receiving acheck 11 upon its insertion into the vending machine for holding thecheck in a so-called escrow position. In the escrow position the check 11 is inaccessible to the person who has deposited the check. The checkremains in the escrow position until completion of a vend operation.Associated with check receiver 23 is a suitable check retention means 25which operates in certain circumstances explained below to cause theescrowed'check to be transferred to a receptacle or the like and thusretained in the vending machine. If not retained following a vendingoperation, a received check is returned to the depositor.

Also associated with receiver unit 23 is a means indicated at 27 forreading (i.e., detecting) and writing (i.e., recording) encodedinformation on a received check. Means 27 may be constituted, forexample, by a conventional structure having one or more magnetic headsfor reading and writing the encoded information on magnetic stripe 13.

Indicated at 29 is a random-access memory (or socalled RAM) for storingin binary coded format a plurality of verification numbers atcorresponding memory addresses thereof. Preferably this memory means orRAM 29 is constituted by one or more integrated circuits of aconventionally available type, though it should be apparent that othertypes of memories might instead be used.

Means designated at 31 is provided for comparing a verification code ofa check received by unit 23 with a verification code of a check receivedby unit 23 with a verification number stored in RAM 29 at a memoryaddress of the RAM corresponding to the memory address code read by unit27 from the received check. This comparing means 31 may comprise, forexample, an integrated circuit binary comparator of a commerciallyavailable type.

If the verification code on the received check is O.K., i.e., if itcompares correctly with the verification number stored at the memoryaddress of RAM 29 corresponding to that read from the received check,then a signal suitably indicating that the verification code is OK. isdelivered to vend means 33 comprising a suitable mechanism fordispensing goods or services, etc., to the individual who has depositedthe check. Thus a vend operation is effected by vendor 33, unless it isprevented in circumstances described shortly.

Upon completion of the vend operation, a suitable vend complete signalis delivered by vendor 33 and is received by the check retention unit25. Thus the check is retained as explained previously. This signal isemployed also to cause operation of a conventional random numbergenerator 35 such as will be familiar to those skilled in computerelectronics. The function of generator 35 is to generate, in effect, newverification codes and verification numbers. Upon receiving a vendcomplete signal, generator 35 generates a new verification code which issupplied to the check read/- write unit 27. Unit 27 records the newverification code on the received check thereby changing its previousverification code to the new code. At the same time, a corresponding newverification number is supplied to RAM 29 for storage in the RAM at thememory address corresponding to the memory address read from thereceived check. In this way, the verification number at thiscorresponding memory address is changed.

The foregoing discussion has assumed that the verification code on thereceived check is O.K.," i.e., that it compares correctly. If instead itdoes not compare correctly, that is, it is not O.l(., no signal isdelivered to vendor 33 to cause a vend operation. However, a signal toretain the escrowed check is delivered to retention unit 25 so as toprevent the incorrect, improper or conceivably fraudulent check frombeing returned to the person who deposited it in the apparatus.

Apparatus of this invention may additionally comprise means for readinga price code on a received check, means for comparing the price codewith a vend price, and means for preventing a vend operationif the pricecode compares incorrectly with the vend price. For this purpose, thecheck read/write unit 27 may include provision for magnetically decodingmagnetic price code characters (as indicated at 21 in FIG. 1) on thereceived check ill. The read price code is compared by a binarycomparator 37 or the like of a conventional type with a vend pricesignalled by vendor'33. This vend price may, for example, be determinedby operation of an item selector by the customer (such as to permitselection of items of different price). A suitable circuit is providedfor causing a vend operation to be inhibited unless the price codecompares correctly with the price of the selected vend operation. If thevend price and price code compare correctly, a price OK. signal or thelike from comparator 37 to vendor 33 enables vendor 33 to effect a vendoperation as selected.

As an example, a check 11 may entitle its'holder to be vended goodshaving a first price, while vendor 33 may be able to vend goods ofeither a first or second price. Thus the holder would select with theitem selector goods to be vended at the first price. Vending of goods atthe second price would be prevented.

The system may also comprise means for reading the vend location code 19on a received check ill, means for comparing the location code with apredetermined vend location number, and means for inhibiting a vendoperation of vendor 33 if the location code compares incorrectly withthe vend location number. The location code which'is read by read/writeunit 27 is provided to a conventional binary comparator 39 or the like.

Comparator 39 effectively compares the read location code with a vendlocation number which has been set by means 41 such as a thumb'wheelswitch or the like. Thus means 41 is employed to set into the apparatusa number corresponding to a particular vending machine, a particularmerchant identity or store location or corresponding to some other vendlocation attribute. If the location number and location code on areceived check ll compare correctly, a vend location OK." signal tovendor 33 permits a vend operation. Otherwise, a vend operation isinhibited.

In its operation, the system involves a method of vend controlcomprising, first, receiving via receiver 23 a check ll. having at leasta'memory address code 15 (which, in effect, defines a cardidentification number) and a verification code 17 adapted to be changed.This first step is initiated, of course, by the check holder who placesthe check in a slot or the like of the apparatus for the purpose ofinitiating a vend operation.

Electronic magnetic reading of the binary coded characters defining thememory address and verification codes is carried out by unit 27. Then,unit 31 electronically compares the vend verification code with averification number stored in RAM 29 at a memory address correspondingto the memory address code 15 read from the received check. A vendoperation by vendor 33 is then initiated if the read verification numbercompares correctly with the stored verification number.

If the vend operation is completed, random number generator 35 issignalled to generate a new verification code and corresponding newverification number. The new number is stored in RAM 29 at the samememory address as the old number, thus changing the verification numberat this address. The verification code on the escrowed check iselectronically changed by magnetically recording (writing) by unit 27 ofthe new verification code on the check. The escrowed check is thentransferred from its escrow location to a storage location by checkretention unit 25. In this way, the received check is retained upon thevend operation.

It may be observed that while a random number generator is presentlydescribed as constituting the means for generating new verificationcodes and numbers, other circuitry might be employed for this purposeand which is consistent with the goal of preventing cheating by usingrelatively secured and difficultly decip'her'able verification codes ornumbers. It should be noted that a randomly generated verificationnumber or code (rather than one generated in an ordered manner)virtually precludes the possibility of a would-be cheater orcounterfeiter guessing the correct verification number or codecorresponding thereto and using this number on an unauthorized or stolencheck.

The present method of a vend control may further comprise, as suggestedpreviously, electronically reading a price code 21 on a received check,electronically comparing by comparator 37 of the read price code with avend price, and inhibiting a vend operation by vendor 33 if the readpricfs code compares incorrectly with the proper vend price.

Additionally or alternatively, the present method may involveelectronically reading a vend location code 19 on a received check 1 1,electronically comparing by operation of means 39 the read location codewith a vend location number, and inhibiting a vend operation of vendor33 if the read location code and vend location number compareincorrectly.

It is preferred that, in the present method of vend control, thereceived check be retained if the read verification code 17 in areceived check. compares incorrectly with the verification number storedat the corresponding memory address of memory 29, even though a vendoperation is inhibited. Thus an improper or fraudulent check will notonly fail to initiate a vend operation but its further use will beprevented.

In view of the above, it will be seen that the several objects of theinvention are achieved and other advantageous results attained.

As various changes could be made in the above constructions and methodswithout departing from the scope of' the invention, it is intended thatall matter contained in the above description or shown in theaccompanying drawings shall be interpreted as illustrative and not in alimiting sense.

What is claimed is:

I. A vending system comprising means for receiving a check having amemory address code and a verification code, the verification code beingadapted to be changed, means for reading said memory address andverification codes, memory means for storing a plurality of verificationnumbers at corresponding memory addresses of said memory means, meansfor comparing a verification code read from a received check with averification number stored in said memory means at a memory addresscorresponding to the memory address code read from the received check,vend means for effecting a vend operationif the read verification numbercompares correctly with the verification number stored at saidcorresponding memory address, means for generating verification codesand verification numbers and operative upon said vend operation togenerate a new verification code different from the verification coderead from the received check and a corresponding new verificationnumber, means for recording said new verification code on the receivedcheck thereby to change the verification code on the received check tosaid new verification code, means for storing at said correspondingmemory address a new verification number corresponding with said newverification code thereby to change the verification number at saidcorresponding memory address, and means for retaining the received checkupon said vend operation.

2. A vending system as set forth in claim 1 wherein said means forreading codes on a received check and said means for recording codes onthe received check are each constituted by means for magnetic readingand writing of magnetically encoded characters on the received check.

3. A vending system as set forth in claim 2 wherein the magneticallyencoded characters are in a binary code in a magnetic stripe format onthe received check and said memory means is constituted by a randomaccess memory.

4. A vending system as set forth in claim 1 further comprising means forreading a price code on a received check, means for comparing the pricecode with a vend price, and means for preventing said vend operation ifthe price code compares incorrectly with the vend price.

5. A vending system as set forth in claim 1 further comprising means forreading a vend location code on a received check, means for comparingthe location code with a predetermined vend location number, and meansfor preventing said vend operation if the location code comparesincorrectly with the location number.

6. A vending system as set forth in claim 1 further comprising circuitmeans for causing the checkretaining means to retain the received check,but preventing said vend operation if the read verification codecompares incorrectly with the verification number stored in said memorymeans at said corresponding memory address.

7. A vending system as set forth in claim 1 wherein said means forgenerating verification codes is constituted by a random numbergenerator.

8. A method of vend control comprising receiving a check having a memoryaddress code and a verification code adapted to be changed,electronically reading said memory address and verification codes,electronically comparing the verification code with a verificationnumber stored in a memory at a memory address corresponding to thememory address code read from the received check, initiating a vendoperation if the read verification code compares correctly with theverification number stored at said corresponding memory address,generating a new verification code and a corresponding new verificationnumber, electronically changing the verification code of the receivedcheck by recording said new verification code on the received check,storing said corresponding verification number at said correspondingmemory address, and retaining the received check upon said vendoperation.

9. A method as set forth in claim 8 wherein said reading and recordingof codes on the received check are effected by magnetic reading andwriting of binary coded characters.

10. A method as set forth in claim 8 further comprising electronicallyreading a price code on a received check, electronically comparing theread price code with a vend price, and inhibiting said vend operation ifthe read price code compares incorrectly with the vend price.

11. A method as set forth in claim 8 further comprising electronicallyreading a vend location code on a received check, electronicallycomparing the read vend location code with a predetermined vend locationnumber, and inhibiting said vend operation if the read location codecompares incorrectly with the predetermined location number.

12. A method as set forth in claim 8 further comprising retaining thereceived check but inhibiting said vend operation if the readverification code compares incorrectly with the verification numberstored at said corresponding memory address.

1. A vending system comprising means for receiving a check having amemory address code and a verification code, the verification code beingadapted to be changed, means for reading said memory address andverification codes, memory means for storing a plurality of verificationnumbers at corresponding memory addresses of said memory means, meansfor comparing a verification code read from a received check with averification number stored in said memory means at a memory addresscorresponding to the memory address code read from the received check,vend means for effecting a vend operation if the read verificationnumber compares correctly with the verification number stored at saidcorresponding memory address, means for generating verification codesand verification numbers and operative upon said vend operation togenerate a new verification code different from the verification coderead from the received check and a corresponding new verificationnumber, means for recording said new verification code on the receivedcheck thereby to change the verification code on the received check tosaid new verification code, means for storing at said correspondingmemory address a new verification number corresponding with said newverification code thereby to change the verification number at saidcorresponding memory address, and means for retaining the received checkupon said vend operation.
 2. A vending system as set forth in claim 1wherein said means for reading codes on a received check and said meansfor recording codes on the received check are each constituted by meansfor magnetic reading and writing of magnetically encoded characters onthe received check.
 3. A vending system as set forth in claim 2 whereinthe magnetically encoded characters are in a binary code in a magneticstripe format on the received check and said memory means is constitutedby a random access memory.
 4. A vending system as set forth in claim 1further comprising means for reading a price code on a received check,means for comparing the price code with a vend price, and means forpreventing said vend operation if the price code compares incorrectlywith the vend price.
 5. A vending system as set forth in claim 1 furthercomprising means for reading a vend location code on a received check,means for comparing the location code with a predetermined vend locationnumber, and means for preventing said vend operation if the locationcode compares incorrectly with the location number.
 6. A vending systemas set forth in claim 1 further comprising circuit means for causing thecheck-retaining means to retain the received check, but preventing saidvend operation if the read verification code compares incorrectly withthe verification number sTored in said memory means at saidcorresponding memory address.
 7. A vending system as set forth in claim1 wherein said means for generating verification codes is constituted bya random number generator.
 8. A method of vend control comprisingreceiving a check having a memory address code and a verification codeadapted to be changed, electronically reading said memory address andverification codes, electronically comparing the verification code witha verification number stored in a memory at a memory addresscorresponding to the memory address code read from the received check,initiating a vend operation if the read verification code comparescorrectly with the verification number stored at said correspondingmemory address, generating a new verification code and a correspondingnew verification number, electronically changing the verification codeof the received check by recording said new verification code on thereceived check, storing said corresponding verification number at saidcorresponding memory address, and retaining the received check upon saidvend operation.
 9. A method as set forth in claim 8 wherein said readingand recording of codes on the received check are effected by magneticreading and writing of binary coded characters.
 10. A method as setforth in claim 8 further comprising electronically reading a price codeon a received check, electronically comparing the read price code with avend price, and inhibiting said vend operation if the read price codecompares incorrectly with the vend price.
 11. A method as set forth inclaim 8 further comprising electronically reading a vend location codeon a received check, electronically comparing the read vend locationcode with a predetermined vend location number, and inhibiting said vendoperation if the read location code compares incorrectly with thepredetermined location number.
 12. A method as set forth in claim 8further comprising retaining the received check but inhibiting said vendoperation if the read verification code compares incorrectly with theverification number stored at said corresponding memory address.